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Top Housing Benefit & Council Tax Benefit topic #1416

Subject: "HB underpayment" First topic | Last topic
Vanessa T
                              

Welfare Benefits Advisor, Atlantic Housing Group, Eastleigh
Member since
04th Feb 2005

HB underpayment
Mon 14-Mar-05 10:06 AM

Dear All

May I pick your brains on this question posed to me by a colleague.

In regard to changes of address within LA area, I understand that the effective date is from the start of the benefit week following the date of the change (i.e. move in on monday 1st, new rent payable from monday 8th).

Where the change of address is to a place which has a higher rent, this results in an underpayment to the landlord who gets the first week of benefit (i.e. 1st to 6th) at the old rent.

I understand that the guidance is to point out that the shortfall will be made up at the end of the new tenancy.

However, this is not good news for housing asociation tenants who are penalised from exchanges or permanent housing offers if they have arrears on their rent accounts.

Also, is it always the case that the shorfall is made up? Am I right in thinking that s.68 (1) of HB (Gen) Regs 1987 says that if the change results in cessation of entitlement, the effective date is the day after the date of the change.

Therefore, it seems to me that if a tenant moves from a lower rent property to a higher rent property in the same LA area, the landlord gets an underpayment. But then if that tenant later leaves the LA area, the underpayment does not get 'made up' by the same process.

I feel I may have this wrong so would appreciate your expert guidance!

  

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Replies to this topic
RE: HB underpayment, stainsby, 11th Mar 2005, #1
RE: HB underpayment, Kevin D, 13th Mar 2005, #2
RE: HB underpayment, Vanessa T, 14th Mar 2005, #3
      RE: HB underpayment, stainsby, 14th Mar 2005, #4
           RE: HB underpayment, jmembery, 14th Mar 2005, #5

stainsby
                              

Welfare Benefits Officer, Gallions Housing Association, Thamesmead SE London
Member since
22nd Jan 2004

RE: HB underpayment
Fri 11-Mar-05 03:47 PM

I think you have got it wrong because HB Reg 68 (2) says:

"(2) Subject to paragraphs (13) and (14), except in a case where regulation 8(3) of the Decisions and Appeals Regulations applies, where the change of circumstances is a change in the amount of rent  payable, it shall take effect from the first day of the benefit week in which it actually occurs or, in a case to which regulation 69(2)(b) or 69(3)(b) applies (calculation of daily amounts), from the day on which it actually occurs."

In other words the rent increase where it is a weekly rent is effective from the previous Monday (unless the rent goes up on a Monday in which case it is the same day), or if the rent is other than weekly eg calendar monthly the increase is effective on the day no matter what day of the week it goes up

  

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Kevin D
                              

Freelance HB & CTB Consultant/Trainer, Hertfordshire
Member since
20th Jan 2004

RE: HB underpayment
Sun 13-Mar-05 06:16 PM

I agree with Stainsby.

Unfortunately, many LAs appear to be blindly following the advice in circular A31 and this means many change of address cases are only being effected from the Monday after the change even where liability changed at the time of the change of address. My advice to anyone who is on the receiving end of "following Monday" syndrome is to appeal, appeal and appeal. Er, right, that should make me popular with LAs...

Regards

  

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Vanessa T
                              

Welfare Benefits Advisor, Atlantic Housing Group, Eastleigh
Member since
04th Feb 2005

RE: HB underpayment
Mon 14-Mar-05 07:57 AM

Thanks for your advice on this - however, I am still confused as if you look at the HB/CTB circular A31/2004 (Revised), paras 20 to 23, it clearly says that:

"changes that affect entitlement to or the amount of HB take effect from the Monday of the benefit week foloowing the date of the move..."

The problem here is that the theoretical situation is one which involves a change of address and a change of rent payable (not simply the latter).

How feasible is it to appeal against something that is so clearly put in the A31 circular???

  

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stainsby
                              

Welfare Benefits Officer, Gallions Housing Association, Thamesmead SE London
Member since
22nd Jan 2004

RE: HB underpayment
Mon 14-Mar-05 08:01 AM

It should be fairly easy because circulars do not have the status of law and so they are not binding on Tribunals

  

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jmembery
                              

Benefits Manager AVDC, Aylesbury Vale DC - Aylusbury bucks
Member since
01st Mar 2004

RE: HB underpayment
Mon 14-Mar-05 09:59 AM

The DWP have announced their intention to amend reg 68(2) in the near future so that it reflects the advice given on A31/2004.

It’s a bit of a swings and roundabouts either way. Reg 68(2) as it stands is helpful if a person’s rent increases, but not so helpful if it decreases. The position is reversed under the new proposals.

  

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Top Housing Benefit & Council Tax Benefit topic #1416First topic | Last topic